The legal importance of corporate governance lies in the fact that it represents the safety valve guarantor of governance. Legislation and regulations governing the work of companies are the main axes for activating corporate governance frameworks. They regulate the laws of the relationship between the concerned parties in the company and the economy in general. When compliance with the legislation in force is achieved in the application of the principles of governance Etc., which makes this practice or document immune to be subject to nullity, and legal accountability, especially jus cogens whose violation entails invalidity, and then assumes civil liability towards the violator, and even criminal liability in some cases. Observance of the principles of governance consistent with the legislation in force also entails the fulfillment and fulfillment of rights.
While dealing with the subject of corporate governance has been linked to the sciences of economics, management, and accounting, especially in the field of accounting disclosure, corporate governance since its inception has been one of the topics of private law in general and corporate law until it has become today one of the most important topics in corporate law; it has become the field in which the sciences of law, economics, accounting, and management are fused together.
With the multiplicity of different interests of knowledge rights, the concepts of governance vary according to the field in which they are addressed. The newly issued amendments to the Companies’ laws included a definition of corporate governance and considered the adoption and promotion of the principles of governance in general. Corporate governance is defined as A set of principles, standards, and procedures that achieve institutional discipline in the upcoming amendments to the Yemeni Companies Law included taking this approach, which is a positive trend, and at the same time requires concerted efforts to come up with amendments that meet all desired aspirations and consider international best practices in this context.
